Bangalore, September 17 The demand environment for the global IT industry will receive a fact check as the world’s leading IT services company, Accenture is set to announce its fourth quarter (June-August) results on September 22.

According to brokerage firms, technology spending by global companies has shown signs of weakening in recent months due to recession fears.

With recessionary concerns looming in the US and Europe, many companies are expected to reduce discretionary IT spending in the coming months. Globally, tech giants including Google, Microsoft and others are freezing hiring, reflecting an impending slowdown in demand.

Accenture’s performance in the fourth quarter will shed some light on the current demand environment and affect the stock prices of Indian IT services players.

Accenture has already guided revenue and earnings growth below expectations. He expects fourth-quarter revenue to be between $15.0 billion and $15.5 billion, versus $15.70 billion for analysts.

It also tempered its fiscal 2022 earnings forecast due to rising inflation and the impact of a stronger dollar on its overseas earnings.

Accenture, which generates more than half of its revenue outside the United States, said a negative currency impact of 4.5% in fiscal 2022 is likely compared to its previous forecast. a 3% impact on the foreign exchange market.

Against this backdrop, many brokerage firms have also started to downgrade Indian IT firms due to downturn fears.

Recently, Goldman Sachs downgraded Tata Consultancy Services & Infosys from ‘buying’ to ‘selling’, citing a potential slowdown in dollar revenue growth amid recession fears in the US and Europe.

“We believe a slowdown in discretionary IT services spending around the growth and transformation program will be quite significant and something that is not yet fully reflected in the industry’s double-digit revenue growth forecast for the fiscal year 24,” Goldman analysts said in a note.